HUTCHMED (China) (HCM) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 2, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Dr. Marek Kania, our Managing Director and Chief Medical Officer of HUTCHMED International. Dr. Karen Atkin, Chief Operating Officer and Mr. Hong Chen, our Chief Commercial Officer of China.

With that I will hand over to Dr. Su.

Weiguo Su

Thanks, Mark. Hello everyone. As you all know the biotech industry is going through some significant changes. HUTCHMED is trying to stay focus on our goals and objectives.

During the first half 2022, HUTCHMED China Commercial continued to grow and deliver strong results, particularly fulfilling, considering the impact from the COVID disruptions.

ELUNATE continues to gain in prescription share for third-line CRC. The lead of Staviga [ph] continue to widen. SULANDA was included into the NRDL this year with a 52% price reduction. Yet sales grew 69%, aided by much improved patient access.

ORPATHYS also delivered strong sequential growth compared to second half of 2021. On the pipeline, while we were disappointed by the surufatinib of U.S. FDA CRL and now MMA withdrawn. Our deep and broad pipeline continues to progress.

Our first multinational MRCT for fruquintinib global registration will read out shortly in August. And if positive, NDA filings will begin towards the end of the year, starting from the U.S. followed by EU and Japan.

For savolitinib, multiple registration studies including global MRCT SAMETA for PRCC and SAFFRON for non-small cell lung cancer enrolling. The SAVANNAH study, data to be disclosed as WCLC shortly, is also continuing to enroll with potential for filings for accelerated approval.

Registration studies for our second wave of products, amdizalisib, sovleplenib and

tazemetostat are all in enrolling. An NDA submissions in China are expected during 2023 and 2024. Finally, managing changes and challenges. HUTCHMED has gone through many difficult stretches in our history.

The management team is very experienced in dealing with challenges, such as Surufatinib setback over the COVID disruption in China, or the overall unfavorable cap market right now. HUTCHMED has a solid cash balance and a cash generative commercial operation in China. And we are confident, we will be able to emerge from these challenges stronger.

Next, I'll ask Mr. Hong Chen, Chief Commercial Officer, China to give an update on first half China oncology commercial performance. Chen?

Hong Chen

Thank you, Weiguo. Hello everyone. HUTCHMED already had a three in-house innovative products approved and market in China and 2022 is also the second year for HUTCHMED to commercialize ELUNATE and SULANDA through its own commercialization platform.